Practical guidance for trade creditors in an administration

The appointment of administrators to Whitcoulls in New Zealand will have prompted trade creditors and suppliers of Whitcoulls – and other companies – to consider their position during an administration. Administration provides the company with 'breathing space' during which the company's viability can be assessed by the administrator. This is achieved by imposing a moratorium restricting most creditors from taking enforcement action against the company

The following practical guidelines may assist trade creditors and suppliers during the period of an administration:

1. Deal only with the administrator's personnel and personnel authorised by them. Get all post administration sales and supplies approved in writing by such personnel. Any dealing with company property, otherwise than with the administrator's consent or under order of the Court, is void.